54.32 Billion Seed Money for Advanced Strategic Industrial Complex... Inducing 614 Trillion Private Investment

Follow-up Measures for Fostering Advanced Industry Global Clusters
Yongin Semiconductor Exempt from Public Institution Preliminary Feasibility Study Starting Next Month
Industrial Complex Resident Companies to Receive 400 Billion Won Loans Over 5 Years

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the Emergency Macroeconomic and Financial Meeting held at the Bankers' Hall in Jung-gu, Seoul on July 27. Photo by Kang Jin-hyung aymsdream@

The government has decided to invest 543.2 billion KRW over five years in national advanced strategic industry specialized complexes such as semiconductors, secondary batteries, and displays. Through this, the goal is to attract 614 trillion KRW in private investment over the next 20 years. The Yongin Semiconductor Complex, where advanced semiconductor manufacturing plants are concentrated, plans to be exempt from preliminary feasibility studies by public institutions starting next month.

On the 18th, the government announced follow-up measures for the "Advanced Industry Global Cluster Development Plan" at the macroeconomic ministers' meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho.

On July 20th, the government designated seven locations as advanced strategic industry clusters: semiconductors (Gyeonggi Yongin·Pyeongtaek, Gyeongbuk Gumi), four secondary battery sites (Chungbuk Cheongju·Gyeongbuk Pohang, Jeonbuk Saemangeum, Ulsan), and one display site (Chungnam Cheonan·Asan).

Among these, to rapidly establish the Yongin Semiconductor National Complex, where system semiconductors and other advanced semiconductor manufacturing plants are concentrated, the government plans to exempt it from public institution preliminary feasibility studies starting in October. Additionally, from November, exceptions will be recognized for separate contracting of fire facility construction, allowing for bulk ordering.

In the second half of this year, detailed development plans for each specialized complex will be established to systematically support rapid processing of permits, removal of regulatory obstacles, and infrastructure investment in the complexes. For example, if a permit application submitted to the National Advanced Strategic Industry Committee is not processed within 60 days, it will be deemed approved. The floor area ratio in designated specialized complexes will be increased by up to 1.4 times.

The government plans to announce additional specialized complexes in the bio sector in the second half of this year and designate new ones in the first half of next year.

The government plans to invest a total of 543.2 billion KRW over the next five years (2024?2028), including 121.3 billion KRW next year, to secure essential infrastructure for advanced strategic complexes and for research and development (R&D), testbeds, and workforce training.

Specifically, 102.7 billion KRW will be invested over five years to expand infrastructure such as water supply at the Pohang National Advanced Strategic Industry Complex. To support cooperation among national advanced strategic industry specialized complexes, 40.3 billion KRW will be provided over five years.

In particular, 400 billion KRW will be allocated over five years, including 100 billion KRW next year, for the National Advanced Strategic Industry Technology Innovation Loan Project. Companies located within the advanced strategic industry specialized complexes will be given priority selection, supporting 50 companies annually with 2 billion KRW each (up to 5 billion KRW).

Through such support, the government aims to induce private investment totaling 614 trillion KRW by 2042, including 562 trillion KRW in Yongin and Pyeongtaek alone.

This content was produced with the assistance of AI translation services.